Retirement Planning tips for Nurses

Whether you just started your career as a nurse or you are approaching the last working years you will have to start planning for your retirement and it can be difficult to figure out where and how to begin and difficult to navigate the jungle of ideas that the media, friends and other sources throw at you.

There is no one size fit all type of retirement plan as everyone has different situations and everyone has different wants and needs when it comes to planning.  What can be done though is to put some simple rules in place that will help each of you see where you are at financially and see if you are moving in the right direction.  Going through these rules will also help you understand what areas to focus on first and help you prioritize all the different places that you possibly could put away money.

It is also very important to keep in mind that retirement is not just about planning around putting aside enough into accounts that are designated for retirement but also about understanding how other factors and other life events can affect what will be available when you retire.

The following questions will help you discover if you are on track to building a solid financial portfolio and weather you have the right mix in place for entering retirement.

  1. Do you have at least 6 months of liquid short term savings?
  2. This is extremely important to have in place as it will allow you to continue growing your retirement funds even in tough financial periods.  Having liquid savings in place that can be accessed without any tax penalties will help your other accounts grow without interruption and will allow you to build for retirement.  So take a look at your financial plan and make sure you have emergency savings in place. Read our guide on how to build short term savings here .
  3. Have you looked into creating a tax diversified savings portfolio?
  4. Make sure that you do not have all of your retirement savings are in portfolios that are taxed the same way. You should strive towards having money that when withdrawn are taxed differently.  That means you should have money that has been tax deferred for years and now all withdrawals are fully taxable. You want to have accounts that are ongoing taxable and that will create mostly capital gains taxes in retirement and then you also should have tax free money available for your income in retirement. This will help you in retirement but it will definitely also help you during your accumulation years.
  5. Do you have a plan to build lifetime income?
  6. When you stop working you want to take as much risk as possible off the table and one way to do that is to create a stream of income that is guaranteed and that can never be outlived. This will help you alleviate stress from outliving your wealth and will allow you still take on calculated risk in your other portfolios.  This is something that is important while in retirement and not necessarily important while someone is still working but certain plans have to be put in place before you enter retirement so that your balance sheet allows for this to be put in place.
  7. Have you analyzed your protection portfolio?
  8. lifetimeMake sure that you are protecting your assets, your income and your future wealth building abilities. Protection should happen before wealth building as it really is the only factor that can take all your wealth away in a split second. Look through what you have in place through work and what you have in place privately and access each area.

And finally make sure that you analyze these things simultaneously and make sure that you build a plan that you can follow.  In summary you should strive towards having perfect protection in place so that life continues for you and your family in case of an unexpected life event. You should have 6-12 months of liquid savings in place. You should strive towards not having any non-deductible debt in place and definitely strive towards getting rid of credit card debts that drag your cash flow down. You should save systematically into multiple investment account and understand why each account has been put in place.

2016-28158  Exp. 10/17

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